A recent survey reveals that online retailers are likely to earn an estimated amount of Rs22,000 crore through record sales of popular gift items during Valentine’s week
luring offers and attractive discounts online are giving the brick and mortar stores a run for their money this Valentine’s season. A recent survey reveals that online retailers are likely to earn an estimated amount of Rs22,000 crore through record sales of popular gift items like flowers, diamond jewellery, chocolates, toys, garments, mobile phones, gadgets and wrist watches.
The survey by ASSOCHAM also shares that the spending on Valentine’s week this year will be 40 per cent higher than last year (it was about Rs16,000 crore in 2014). Improved economic situation and increased spending power of individuals are cited as reasons for this growth.
This year, the share of online shoppers (32 per cent) is much higher than the last year (20.5 per cent). The survey states that in view of V Day, companies are coming up with attractive offers by way of targeting highly-paid executives in IT, BPO-ITeS, retail, hospitality industry and also students. Aggressive online discounts and abundant choices are keeping people indoors.
The survey, ‘Valentine’s Day-big business for shoppers and the industry’, covered 600 organised retailers and online shopping companies. “Valentine’s Day is turning out as a big festival with a significant jump in business over the past four to five years,” says DS Rawat, secretary general, ASSOCHAM.
As per the findings, about 52 per cent of online shoppers say that they prefer to shop online because nline retailers offer better deals. Half the smartphone owners in the group and nearly 18 per cent of the tablet owners use those devices to make purchases. Majority of shoppers said they receive retail deals and promotions on the phones and tablets. Sending a gift to his/her partner without any additional cost of delivery is considered a big advantage of online shopping. As per the findings, the rural spending during the V Day has also increased by over 22 per cent than the urban spending (20 per cent) this year.
Flowers and chocolates remain as one of the major gifting options for lovers in the age group of 18-24, whereas gadgets, watches and expensive jewellery are some of the gifting options preferred by people in the age group of 25 and above. Demand for special gift hamper for men that includes branded apparel, sterling silver cufflinks, an exquisite silk tie, a calfskin belt, wallet and a key chain, at a price of over Rs12,000 is on the rise.
While corporates are planning to spend massively on Valentine gifts (from Rs1,000 to Rs50,000), students are buying gifts ranging from Rs500 to Rs10,000. Special V Day travel packages to destinations like Kerala, Goa, Nainital, Mount Abu, Dehradun, Mussoorie, Kasuali, Shimla, Panchvati, ranging from Rs6,000 to Rs60,000, are also in demand. “Valentine’s Day bookings are mostly last minute and we expect to witness a surge in bookings closer to the date.
A Valentine’s getaway can cost a couple anything from Rs3,000 to Rs4,000 per person depending on choice of accommodation, travel mode, package inclusions and duration of stay. We are offering a wide range of holiday options, from economical homestays to luxury retreats and relaxed weekend breaks to active holidays under our short break and romantic holiday sections,” says Ranjeet Oak, head–holidays, MakeMyTrip.
Airlines are also not far behind in luring the youth by way of tie-ups with reputed travel houses and hotels for destinations like Bengaluru, Hyderabad, Jaipur, Shimla, Mumbai, Goa and Kerala. International holiday packages include popular destinations like Bangkok and Singapore.